Financial Strategies

Bill Rammell not so long ago announced new plans for the transformation of the delivery of student finance in England. It now seems that all is not well with the system and over 21’000 graduates continued to make repayments to the Student Loans Company (SLC) even though they had cleared their debt.

The figures are quite horrifying with an exponential upward trend since 2001, increasing from a mere 267 to 21’774 in less than 7 years. What is more worrying is that with the increase of student debt as reported by The Student Zone towards the end of last year, it can only compound the problem further.

The system to end repayments may be a contributing factor towards the problem. Once a student graduates and providing they earn more the £15’000 a year, nine per cent is deducted from their salary by HM Revenue & Customs. When the graduate is about to repay the loan amount the SLC sends them a letter asking them to send a copy of their P60 or all pay-slips from their final tax year as proof they have paid. It is only then that the SLC will send “stop notice” to HM Revenue & Customs.

So the SLC sends you a letter you send them one back and then they send a letter to the Taxman who only then stops deducting the repayments. So what happens if you’re a graduate that has moved house recently or there is a postal strike, not forgetting that it maybe a good number of years after graduating and you could even be abroad at the time. So what happens? Well it’s quite simple really they keep taking the money until the end of the financial year and only then is it automatically stopped.

Mike Harding of The Student Zone and the Student Debt Reduction Solution (SDRS) commented on the news

“When you look at the figures and the time scales it makes for worrying reading, yet another over complicated government system handling a simple process, it reminds me all to much of the failed Child Support Agency. I would like to ask and be interested to find out where all this money ends up before it is refunded to the students”

In fact on Monday 3 July 2006 the SLC released a Press Announcement entitled “SLC welcomes unveiling of new Student Finance delivery system” At the end of the document a handy “summary of key changes” was included in the editors notes and under the heading “Timely payments:” it states “We will be able to contact students – by texting their mobile phones,…” surely if the SLC can be this efficient with payments they could use the same kind of efficiency and insight into notifying the students they have made all their repayments.

Or indeed use of email could be one solution, after all its not often we change our personal email address and when we move house it doesn’t change and the internet is not often likely to go on strike due to a pay dispute with a bunch of Cisco Reuters

So Bill how are you going to sort this one out?

To have a bright career prospect, everything revolves around how much you are educated. But to have a good education, you have to pursue higher studies and for that you need to have sizeable funds available to you. In the present circumstances, pursuing higher education is not any more an expensive affair and for the same, you can rely upon student finance. Through this loan program, you will be able to extract the funds to maintain your education expenses in a convenient manner.

The program is flexible and offers a package attached with the best terms and conditions. Students with a history of bad credit can also apply for this loan package to take care their educational expenses. the amount derived can be use it for purposes like paying admission fees, hotel dues and mess charges, expenses on books and computers along with some to tackle personal needs.

Students can derive the funds basically from various sources, but it is the federal government through which you derive the funds with the best possible terms and conditions. Federal loan is offered to you as Stafford and Perkins loan schemes. The interest rate charged is comparatively low. This scheme of the finance is meant only for the students belonging to the economically weaker section.

Other than government agencies, finance for students is also offered by private lenders. The loans offered are categorized in to secured and unsecured form. Secured form of the funds offers a bigger amount at comparatively low rates. On the other hand, unsecured form of the funds can be derived without any collateral.

The repayment tenure too is flexible, as you have to start making payments only after completion of the desired course and that you have got a suitable employment.

Student finance makes it easy for you to undertake a proper education worrying about the financial hassles.

Anyone can identify with the heavy strain placed on a student’s finances. Besides paying for school, many undergrads and those pursuing further education have countless responsibilities and financial obligations to fulfill. Though part-time jobs can cover small expenses, bills and student loan payments can really add up. All students should keep these tips in mind:

• Apply for financial aid early. Make sure you research when the cut off date is and put in your government application in as soon as it’s allowed.

• Pay a visit to your campus financial aid office. Many a times, there are scholarships available that you may not have known existed.

• Keep track of small purchases, such as your weekly spends at Starbucks or dinners out. If you find a significant amount of your cash flow is going to one place, try to reduce it slowly.

• Don’t borrow more than you can pay back: both from friends, parents or credit card companies.

• Shop around for student-friendly banks. Many campuses have in-house banks with flexible account options for students.

• Buy used textbooks for your classes. You may not save a whole lot, but you’ll reduce some of your semester expenses.

• Consider signing up for a student credit card, with added benefits and savings.

Many student credit cards offer great cash back bonuses, such as the Discover Student Monogram Card. StarReviews.com reports that this particular student credit card provides 5% back on qualifying purchases, as well as the opportunity to double your rewards at participating merchants.

The Discover Student Tropical Beach card doesn’t charge an annual fee, either, which is a popular perk of many student credit cards. Custom credit cards and all, any student should monitor their spending habits to prevent any financial fiascos from occurring.